Goldman Sachs: Slightly lowers target price for KERRY PPT (00683) to HKD 25, rating remains "Neutral."

Goldman Sachs released a research report stating that KERRY PPT (00683) recorded a mid-term core profit of HK$782 million after excluding fair value losses from investment properties, a year-on-year decrease of 9%, which is roughly in line with the bank and market expectations. The group declared an interim dividend of HK$0.4 per share, unchanged from the previous year, with a payout ratio equivalent to approximately 74% of core earnings per share. Based on a 70% discount on the projected net asset value per share for 2026, the target price has been lowered from HK$26 to HK$25, maintaining a "neutral" rating. Property prices continue to recover, leading to a year-on-year decline of 59% in revenue from development properties in Hong Kong during the period; however, EBIT profit margin has rebounded to 15%. Benefiting from contributions from new mixed-use projects in Shanghai and Hangzhou and the appreciation of the renminbi, revenue from investment properties in mainland China increased by 5% year-on-year. Goldman Sachs has adjusted its core profit forecasts for KERRY PPT for 2026 to 2028, with adjustments ranging from a 5% downgrade to a 1% upgrade, revising earnings per share forecasts from HK$1.4, HK$3.1, and HK$3.82 to HK$1.3, HK$3.05, and HK$3.84.